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Pastimes : Clown-Free Zone... sorry, no clowns allowed

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To: Horgad who wrote (178755)7/10/2002 5:10:42 PM
From: yard_man   of 436258
 
>>Also I think you can tell your broker that you don't want your shares loaned out.<<

Just don't get a margin account -- or switch back.

Even during normal times, it can happen that the broker can no longer borrow the number of shares to maintain your position and you get called -- apparently there is some kind of daily accounting for them. I've had that happen 3 times in the past couple of years -- and CONTRARY to popular wisdom: in each instance the shares continued to go DOWN --it didn't result in a squeeze.

This is more likely to happen as shares go down, I think, because folks that hold them on margin are required to sell, but I don't know that for sure ...
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